2022 has proven to be another wild year for real estate. We started with some incredible sales activity and price growth followed by a significant slow down as the Bank of Canada began raising interest rates in March. On the surface, the monthly real estate statistics for Orangeville look very healthy but there are some underlying numbers that show the market is experiencing a shift and becoming a more balanced market. Let’s look at the numbers.
The Month of May 2022
In May there were 123 homes listed for sale this is a 29.47% increase over the 95 homes listed for sale in Mary 2021. The number of new listings in 2022 continues to trend above the ten-year average.
46 homes sold in the month of May 2022, this is a 34.29% decrease from the 70 sales in the same period of 2021. The 46 sales in the month of May represent a decline from the average May sales over the last ten years and is evidence of the slowing demand due to rising interest rates.
With 46 sales and 123 new listings in the month of May, there was a Sales to New Listings Ratio (SNLR) of 37.40%. Generally, with the SNLR below 40%, this indicates a buyer’s market. While one month does not mean the real estate market has flipped from a seller’s to a buyer’s market, it is reflective of the slow down in sales activity and more balanced market dynamics we are currently experiencing.
The Average Sales Price of a home in Orangeville in the month of May was $863,642 this represents a 10.06% increase from the average sales price in the month of May 2021 of $784,669. While prices continue to trend above where they were last year, prices are below the peak we experienced in February 2022 when the average sales price was $1,049,670. Prices have declined 17.72% since February and are similar to the prices experienced in the fall of 2021.
The Average Sales Price to List Price Ratio for the month of May was 99%, this is another indication of more balance in the Orangeville real estate market as this figure has remained over 100% during the last two years.
The Average Days on Market for homes that sold in the month of May was 13 days, this is an indication that while there have been a slowdown in sales activity the more desirable homes are still selling fast and overall houses are not sitting on the market for a long time.
At the end of the month, there were 86 homes available for sale in Orangeville this is a 95.45% increase from the 44 homes available for sale at the same point last year. With this many homes available for sale it represents a shift to the pre-pandemic inventory levels in Orangeville and will provide home buyers more options when looking for a home.
With 86 homes available for sale at the end of the month and 46 homes sold during the month of May, this indicates there are 1.9 months of inventory available in the market. While anything under 3 months of inventory is considered to be an indicator of a seller's market this number has increased quickly over the last 3 months.
Year-to-Date – May 2022
There were 502 homes listed for sale in the first five months of 2022, this is an increase of 12.30% from the 447 homes listed for sale in the same period last year.
Between January and May 2022, there have been 278 a decrease of 22.99% from the 361 homes sold during the first five months of 2021.
With 278 sales and 502 homes listed for sale, the Sales to New Listings Ratio for the first five months of 2022 continues to decline and is currently at 55.38%. This is an indication of a balanced market.
Year-to-date the average sales price for a home in Orangeville is $980,672, which is a 24.59% increase over the same period in 2021 but has been declining over the last three months as sales volumes have declined and interest rates have increased.
The year-to-date Sales Price to List Price Ratio is currently at 110% which remains high due to the activity at the beginning of the year but has been declining over the past three months.
The Average Days on Market on a year-to-date basis through May is 8 days, this figure continues to be extremely low but has been inching higher as sales activity has slowed down over the last three months.
What Does All This Mean?
Sometimes the market statistics paint a clear picture of what is happening in the real estate market, this is not one of those times. On the surface many of the statistics for the month of May 2022 are positive for sellers however with the recent changes in interest rates there has been a slow down in demand for homes in the Orangeville area and prices have come down from earlier this year.
If you are thinking of buying a home there has been a slow down in sales activity leaving more homes available to choose from. Prices while still high have come down from the frenzied levels of earlier this year. Yes, interest rates are increasing but if you are looking for a family home to purchase for the long term the next few months over the summer may be a great opportunity to find the home you have been looking for with a little less competition. With the expectation of interest rates rising again when the Bank of Canada meets next on July 13th and potentially more increases to follow, I would recommend meeting with a lender, to get preapproved and to lock in an interest rate when you are searching for a home.
If you are thinking of selling your home, there has been more inventory coming on the market and homes are not selling as fast or for as much as they were earlier this year. Presentation and Pricing are key to selling your home in this market. Right now the homes that are selling fastest and for the best terms are the homes that show very well and are listed for a price that is logical, defendable, and arguable given the current market conditions. So why would you want to sell your home? There are many reasons to sell right now, it could be the right time for you and your family to upsize, downsize or move to a home that suits your current situation better, there are more options for you to buy a home, and if you are buying and selling in the same market, both geographically and timing, you may receive a little less for your home than you would have earlier this year, but you will spend a little less on the home that you are purchasing as well.
If you would like to talk about what has been going on in the Orangeville real estate market and how it may affect your specific situation in more detail send me a message or click the link below to book a time for us to meet.
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